Press Releases

PHOENIX, Aug. 27 /PRNewswire/ -- The Arizona Corporation Commission (ACC)
Wednesday approved a $32 million general increase in rates charged to
customers in Southwest Gas Corporation's Arizona service areas. The 10.25
percent increase will be effective September 1, 1997.

Wednesday's action by the ACC is the result of a settlement negotiated
between the company, the ACC Staff, the Arizona Residential Utility Consumers
Office and other intervenors. The company's filing in early November 1996 was
for $49.3 million or 15.9 percent.

Although the settlement amount was less than the company sought, it offers
several positives, according to Edward S. Zub, senior vice
president/Regulation and Product Pricing.

"This settlement provides the company the certainty of a reasonable
increase and the benefit of having new rates in place before the start of the
heating season. It also recognizes approaching deregulation by reducing
subsidies between customer classes," Zub said.